Spartanburg-based Carolina Alliance Bank on Wednesday announced its board had declared a 5 percent stock dividend.
The bank said the dividend will be payable Sept. 19 to shareholders of record as of Sept. 5, 2017.
Holders of Carolina Alliance common stock as of the record date will receive one additional share for every 20 shares held on the record date, the bank said. Cash will be issued in lieu of fractional shares.
“We are pleased to announce a 5 percent stock dividend to our shareholders,” said Terry Cash, chairman of Carolina Alliance, in a statement. “The board of directors believes that our shareholders will benefit from this stock dividend and the expected related enhancement of our stock’s liquidity.”
Carolina Alliance said the stock dividend will increase the total number of its shares of common stock outstanding from 6.8 million to 7.2 million. The bank said it expects to distribute the additional shares on or about Sept. 19 by its transfer agent American Stock Transfer and Trust Co.
“We’re very pleased to reward our loyal shareholders for their ongoing support,” said John Kimberly, CEO of Carolina Alliance, in a statement.
In July, Carolina Alliance said its earnings increased almost 11 percent during the second quarter.
The bank reported its net income rose to $2.1 million for the quarter ending June 30, compared with $1.9 million during the same period of 2016.
Carolina Alliance attributed the increase to non-interest income and decreased income tax expense, partially offset by an increase in its provision for loan losses, and a slight decrease in net interest income.
The bank also said its book value per common share was $11.11 as of June 30, compared with $10.74 as of June 30, 2016.
For more information, visit carolinaalliancebank.com.